S&P rates James Hardie notes BB

S&P said it assigned its BB issue-level rating and 3 recovery rating to James Hardie International Group Ltd.'s proposed €350 million senior unsecured notes due 2026.

The recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

James Hardie International Finance DAC is the issuer of the debt.

Proceeds will be used to repay a portion of the company's existing bridge facility due April 2019, which was put in place to finance the Fermacell acquisition and to pay estimated related fees and expenses.

S&P said that although it estimates very high recovery prospects for James Hardie's senior noteholders under a default scenario, it capped the recovery ratings on the senior notes at 3 in line with its general criteria guidelines, which generally limit recovery ratings on unsecured debt issued by corporate entities with corporate credit ratings of BB- or higher.

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